Welcome to India, Minister. What is the agenda of your visit?

My visit is the first by a Sri Lankan minister since the assumption of office by President Mahinda Rajapaksa. It is very important for India and Sri Lanka to maintain close ties by promoting economic relations and furthering cultural interactions. I look forward to meetings with Indian Finance Minister Shri P Chidambaram and Indian Minister of Commerce Shri Kamal Nath.

How is the economic cooperation between Sri Lanka and India faring?

Currently, Sri Lanka receives the 2nd largest FDI from India, about 30%. IOCL, with an investment of US$80 million, has started service stations and petro-products distribution in Sri Lanka. Many other Indian companies, such as Apollo, Ashok Leyland, Asian Paints, Ambuja Cement, Bajaj, Ceat, Godrej, Tata (hotel and automobile), to name a few, are present in Sri Lanka. In the banking sector, we have the presence of IOB, SBI, and, recently, ICICI. At least 20 of the top 100 Indian corporates have an active presence in Sri Lanka, which alone speaks of the potential that exists between our two countries. If you look at aviation, both Jet and Sahara have started operations to Sri Lanka, and, at present, Air Lanka— with 82 flights a week servicing 9 destinations in India—is the biggest foreign carrier to operate in India in terms of number of flights: yet another indicator of the growth taking place. We are also focussing on the IT sector; HSBC, for instance, has already set up BPO operations. We are also in talks with Infosys to further explore opportunities in the IT sector.

How was the SAARC Summit?

The SAARC Summit in Dhaka went off very well. We are looking forward to the SAFTA conclusion.

Overview of Sri Lanka’s strengths…

Sri Lanka has a 27-year-old history of free enterprise. We are especially strong and competent in the apparel sector. In this value addition process, we import textiles and re-export finished garment products. Apart from traditional exports of tea, we are now into our own ‘branded’ tea. Our entry into the Indian market also includes chocolates, biscuits, processed food, furniture, toys, etc. India is, currently, our 3rd largest export destination. Due to Sri Lanka’s unique geographic location, we are also exploring the possibility of refinery projects; therefore, port development would be a thrust area. Tele-communications, infrastructure, and livestock feed are other important areas. Sri Lanka is an ideal destination for Indian industrialists, including the service sector. We aim to provide the fastest possible return on investment; this is the theme we are focussing on.

Sri Lankan situation post-tsunami?

Despite the devastation caused, normalcy in community life has been restored. Reconstruction efforts have been going in earnest and infrastructure has been allowed to re-model itself to newer advantages. UN’s special envoy on tsunami relief former President Bill Clinton paid his third visit to Sri Lanka in ten months. Settlement of displaced people in new homes has been done and, also, maintenance of income loss. The pace of rebuilding has also been extraordinarily efficient, e.g. laying a 50-60 km railway track in record 3 months.